No provision for financial risks 2023
News The Riksbank has decided not to make any financial risk provisions for 2023. For the financial year 2023, the Riksbank is expected to make a profit of SEK 16 billion, and the Riksbank's equity is expected to amount to SEK -2 billion after the appropriation of profits. As equity continues to fall below one third of the statutory target level for equity, the Riksbank will submit a petition to Parliament in the spring regarding the restoration of equity.
“The preliminary result means that restoring equity to the basic level stated in the Sveriges Riksbank Act now corresponds to a capital injection of approximately SEK 40 billion. This can be compared with the SEK 80 billion in capital injections I indicated in October. The difference is mainly due to the fall in interest rates, but also to the gains resulting from the currency hedges the Riksbank implemented during the autumn. The capital injection we finally arrive at will be shown in the petition submitted to the Riksdag in March,” says Governor Erik Thedéen.
In the annual accounts for the financial year 2022, the Riksbank reported a loss of just over SEK 80 billion. As a result of the loss, the Riksbank's equity became negative, SEK -18 billion. Although the Riksbank is expected to make a preliminary profit of SEK 16 billion for 2023, equity will fall below one third of the statutory target level of SEK 60 billion. The target level will be recalculated in line with the annual percentage change in the CPI after the outcome for December has been published.
According to the provisions on capital in the new Sveriges Riksbank Act, which apply from the 2023 financial year onwards, the Riksbank shall submit a petition to the Riksdag to restore its equity if it falls too low.